External relations: a global commitment (The European Union: A Global Player)

The importance the Union now attaches to its relations with countries around the world can be seen through recent innovations in both the European Commission and the Council of Ministers. Some 15 years ago, the complete panoply of external relations was handled by just two Commission departments. Now there are six. To ensure a coherent approach and a clear identity, overall coordination is assured by the External Relations Commissioner, Chris Patten. He works closely with his colleagues in charge of sectoral policies - Poul Nielson (Development and Humanitarian Aid), Günter Verheugen (Enlargement) and Pascal Lamy (Trade). He also works in close contact with Javier Solana, the Secretary-General of the Council of Ministers and the first High Representative for the Common Foreign and Security Policy (CFSP).

The Union has an extensive network around the world, which helps it to formulate and implement policy. In addition to the many foreign embassies in Brussels accredited to the EU, the Commission has over 120 of its own delegations in third countries. Their role is to develop the Union's bilateral links with nations of hugely differing size and wealth, promoting the EU's policies and values and keeping Brussels informed of developments on the ground. Alongside frequent contacts between officials, ministers and parliamentarians, the EU has regular summit meetings, once or twice a year, with its major partners such as the United States, Japan, Russia and Canada. Originally heavily trade oriented, discussions now also range over a vast array of political issues including ways to protect the environment, tackle international crime and drug trafficking and promote human rights. The Union makes its views known in various multilateral forums such as the United Nations, the World Bank and the Organisation for Security and Cooperation in Europe and works with them to better secure the common objectives of peace and security.

Although the Presidency of the EU rotates between Member States every six months, continuity in foreign policy is ensured by the CFSP High Representative, the Council Secretariat and the Commission. The Member State holding the Presidency is also assisted by the country that will hold the next Presidency.

The European Union's common foreign and security policy (CFSP) was introduced in 1993 by the Treaty on European Union (Maastricht Treaty), following over 20 years of political cooperation between the EU countries.

Since 1993, the Council of Ministers has adopted some 70 common positions on foreign policy issues ranging from the Balkans to East Timor and from the non-proliferation of nuclear weapons to counter-terrorism. Once adopted, Member States are required to adhere to common positions, which the Presidency defends at the United Nations and in other international forums. Over the same period, the Council has agreed some 50 common actions, including de-mining operations in Africa and elsewhere and the dispatch of EU special envoys to crisis areas such as the Balkans and the Middle East.

Since the Amsterdam Treaty of 1999, the European Council (Heads of State or Government) is empowered to adopt longer-term common strategies for certain countries or regions. Common strategies on Russia and the Ukraine were adopted in 1999 and on the Mediterranean in 2000.

Within the CFSP, a common European security and defense policy (CESDP) is rapidly taking shape. To reinforce the Union's ability to deal with crisis situations in neighbouring regions or further afield, plans are in hand, in close cooperation with NATO, to set up a rapid reaction military force to carry out peace-keeping and other non-combat tasks at short notice. The existence of such a force would complement the EU's existing possibilities, which include police operations, border controls and civilian humanitarian assistance.

Foreign policy is not just about handing out aid. But the scale of financial assistance is worth recording. The EU is now the largest donor of humanitarian aid and fifth, behind the United States, Japan, Germany and France, in terms of grant finance.

Between them, the EU and its Member States provide some 55 % of total international official development assistance (ODA) and more than two thirds of grant aid. The share of European aid managed by the Commission and the European Investment Bank has increased from 7 % 30 years ago to 17 % now. In total, the Commission administers an annual external aid portfolio of some 9.6 billion euro annually.

Initially, EU external aid was concentrated on Member States' former colonies in Africa, the Caribbean and the Pacific. Now it is truly global. Two thirds go to central and eastern Europe, the countries of the former Soviet Union, the Balkans, the Middle East, the Mediterranean, Asia and Latin America. Aid is given not just for development purposes, but also to help reconstruction, institution-building, macroeconomic programmes and to promote human rights.

Given the sheer scale of EU overseas aid and the large number of projects which it helps finance - in 1999 alone, there were some 44 500 of these - it is not surprising that huge logistical challenges are involved. These are made all the more difficult given that the volume of EU aid has nearly tripled between 1990 and 2000, while staff levels have not even doubled. Faced with this situation, the Commission is implementing a radical overhaul of its administrative arrangements to improve the speed, quality and profile of its external aid.

The United States is without doubt the Union's major partner and the comprehensive relationship is particularly close on a range of issues stretching from trade and politics to foreign policy and security. The two cooperate closely not just on bilateral matters, but in international forums like the United Nations, the World Trade Organisation, NATO and the G8, and in sensitive parts of the world such as the Balkans. They have what is considered to be an 'enabling relationship', where by, when they are together, they can be a powerful force for progress on almost any issue.

The foundations of the present partnership were shaped by the 1990 Transatlantic Declaration, which provides for two bilateral summits a year. They were further strengthened by the 'new transatlantic agenda' in 1995, whose four chapters - promoting peace and stability throughout the world, responding to global challenges, contributing to the expansion of world trade and establishing closer ties between partners - cover the whole gamut of EU activities. The Transatlantic Economic Partnership of 1998 with its commitment to removing bilateral technical trade barriers and promoting multilateral liberalisation brought a new dimension to the relationship as did the Bonn Declaration the following year with its confirmation of a 'full and equal partnership' on economic, political and security issues.

The EU and the United States are the two largest economies in the world and are becoming increasingly interdependent. Together, they account for almost half the global economy and transatlantic flows of trade and investment amount to almost 1 billion euro every day. Each is the other's largest single trading partner and most important source of, and destination for, foreign investment. Although disputes over bananas and hormone-treated beef may grab the headlines, they account for less than 2 % of transatlantic trade and are essentially an inheritance of the past rather than a reflection of the present. An early warning system and arrangements for regulatory cooperation are now in place to try and defuse potential problems as quickly as possible.

A key input into the wider relationship is made by the business communities on both sides of the Atlantic through the 'transatlantic business dialogue' (TABD). More recently, parallel dialogues have been established to ensure labour, consumers and environmentalists can add their contributions. In addition, there are regular contacts between officials, ministers and politicians, including meetings between members of the European Parliament and the US Congress.

Importance is given to specific accords on the regulatory aspects of trade. A 'mutual recognition agreement', ranging from telecom equipment to pharmaceuticals, allows EU bodies to carry out conformity assessments to US requirements and vice versa, saving exporters considerable time and cost. Cooperation between customs authorities is encouraged, while other agreements promote science and technology and the trade across the Atlantic of live animals.

The bilateral relationship between the EU and Canada was placed on a formal footing in 1976 with the Framework Agreement for Commercial and Economic Cooperation - the first between the then European Community and an industrialised country. Contacts became far more ambitious with the adoption in 1990 of the Transatlantic Declaration on EU-Canada Relations and then six years later with the EU-Canada Joint Action Plan. Another qualitative impetus was given in 1998 wit h a commitment to launch the 'EU-Canada trade initiative' with its emphasis on mutual recognition, services, government procurement, intellectual property rights, competition issues, cultural cooperation and business-to-business contacts.

The partnership is not limited to trade issues. A joint statement on 'northern cooperation' issued in December 1999 reaffirmed their commitment to work together in promoting a range of policies such as sustainable development and another on small arms has led to cooperation in the fight against the illegal trade in handguns and light weapons.

The importance the Union attaches to its relations with Moscow was made clear in mid-1999 when it agreed a common strategy on Russia for the following four years. The initiative signalled a new phase in relations between the two partners and was the first foreign policy document approved by the EU under the new common foreign and security policy provisions introduced by the Amsterdam Treaty from 1997. It was followed six months later by a similar common strategy towards Ukraine.

Both initiatives go further than the 'partnership and cooperation agreements', which the Union has with all the new independent States, i.e. the countries which earlier formed the Soviet Union. They aim to consolidate democracy, the rule of law and public institutions and to help the countries integrate into a 'common European economic and social space', including working towards a free trade area with the Union. Major initiatives include cooperation linked to disarmament and fight against organised crime. While it is keen to have closer economic and political ties with these countries, the Union does not hesitate to criticise any perceived abuses of human rights, as it has shown in the case of the Russian intervention in Chechnya.

The main vehicle for EU assistance to partner States in eastern Europe and central Asia is the Tacis programme, which benefits Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Mongolia, Russia, Tajikistan, Turkmenistan, Ukraine, Uzbekistan. Launched in 1991, the programme now has a budget of 3.138 billion euro for the period 2000 to 2006. Its central thrust is to provide know-how to promote the transition to a market economy and to reinforce democracy and the rule of law.

The current seven-year programme focuses on a number of cross-sectoral themes such as public administration reform, private sector development and the social consequences of moving to a market economy. Special attention is devoted to nuclear safety ranging from proper waste management strategies to the closure of Chernobyl.

The European Union is strongly committed to bringing peace and stability to the Balkans and its main objective is to integrate the countries of the region into Europe's political and economic mainstream. The 'stabilisation and association process' is its principal policy instrument involving Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the former Yugoslav Republic of Macedonia. The process is individually tailored to the needs of each participant and includes economic and financial assistance, cooperation, political dialogue, the goal of a free trade area, approximation of EU legislation and practices and cooperation in areas like justice and home affairs.

This process specifically offers the countries the long-term prospect of EU integration - a historic turning point in their relations with the Union. But they themselves must first meet demanding political and economic conditions and demonstrate they can emulate the EU's example by increasing trade and cooperation between themselves. The Union provides the five countries with substantial financial and technical assistance. In the 1991-99 period, more than 4.5 billion euro we re disbursed to the region. Between 2000 and 2006 the assistance funds earmarked in the EU budget for this purpose will be substantially increased.

The Union believes its own example of regional integration can provide a model for the countries in the region. At their Cologne Summit in June 1999, EU leaders adopted the Stability Pact for South-Eastern Europe. Bringing all parties together, the pact complements the stabilisation and association process and helps to build new forms of cooperation and stimulate practical and financial support from the international community. It focuses on regional cooperation initiatives in the fields of business and the environment, the fight against corruption and organised crime, elimination of ethnic discrimination, security sector reform and the independence of the media.

Contributing to efforts to establish a comprehensive peace agreement in the Middle East has long been one of the EU's main foreign policy objectives. The Union has appointed a special envoy for the region to help in the task and tries to meet this goal in a close and equal partnership with the United States and Russia.

The Union believes that a just and lasting political settlement on the basis of relevant UN resolutions must be consolidated through cooperation and economic progress in all countries in the region. It has warned that a comprehensive deal will require substantial financial assistance and that sustained economic growth will be necessary to avoid widespread disaffection and instability.

In this regard, the Union has assumed its responsibility as chair of the Regional Economic Development Working Group (REDWG) in the context of the multilateral peace talks. The establishment of the REDWG Secretariat in Amman, Jordan, as a permanent regional economic institution for the Middle East, could help achieve growth by supporting regional cooperation, coordinating trade- and investment-related matters and promoting transport, energy and communication infrastructure in the area. In time, it could even lay the foundations for a Middle East economic area with the free movement of goods, services, capital and labour.

The Union has a strong record of involvement. It is the largest donor to the Palestinians, contributing over 1.6 billion euro in grants and loans between 1994 and 1999 (EU and Member States combined) representing over 60 % of all international assistance. This EU support has effectively underpinned the Palestinian Authority and contributed substantially towards the reconstruction of the deteriorated physical infrastructure in the West Bank and Gaza Strip. In addition, the EU and its Member States make an annual transfer of over 100 million euro to the UNRWA, the UN agency caring for Palestinian refugees - the largest group of refugees in the world, numbering more than 3 million people.

The EU provides substantial support to Jordan, Lebanon, Syria and Egypt. Regional cooperation in the Middle East is reinforced by annual aid of some 20 million euro to specific projects involving Israelis and Arabs through people-to-people activities (seminars, festivals, etc.) and cross-border cooperation between municipalities, experts and non-governmental organisations.

Relations with Israel are largely determined by a succession of trade agreements between the two parties and by the bilateral association agreement, which came into force in June 2000. This launched a close political dialogue between the two partners and set out a large number of areas for future cooperation.

In the Gulf region, the Union has a cooperation agreement with the Gulf Cooperation Council (consisting of Saudi Arabia, Ku wait, Bahrain, Qatar, the United Arab Emirates and Oman). Since 1998, a dialogue with Iran on political and cooperation issues has been taking place. With Iraq, the EU has no contractual relations due to the UN sanctions. The EU also concluded a renewed cooperation agreement with Yemen in 1997.

In November 1995, the 15 EU members and 12 countries and territories, covering almost the whole of the Mediterranean region [Morocco, Algeria, Tunisia, Egypt, Israel, Jordan, the Palestinian Authority, Lebanon, Syria, Turkey, Cyprus, and Malta] adopted the Barcelona declaration. The signatories undertook to create an area of peace and shared prosperity and to improve mutual understanding between their peoples. This is being followed by a new Euro-Mediterranean 'charter for peace and stability' to implement strengthened political and security cooperation in areas such as drug trafficking, terrorism, immigration, conflict prevention and human rights.

To reinforce the overall objectives, the Union is negotiating bilateral association agreements with its Mediterranean partners. By mid-2000, these had been concluded with Morocco, Tunisia, Jordan, the Palestinian Authority and Israel.

The 'Barcelona process', which is the only forum where ministerial meetings involving all 27 partners have taken place even during difficult periods in the Middle East peace process, aims to establish a Euro-Mediterranean free trade area by 2010.

To help the Mediterranean partners overcome the challenges posed by free trade, the EU's MEDA programme provides around 1 billion euro annually in grants supplemented by around 1 billion euro in loans from the European Investment Bank.

There is already a considerable degree of economic interchange in the Euro-Mediterranean region. The latter's imports from the Union now amount to more than 30 billion euro (some 47 % of total imports), while exports are even higher at 63 billion euro (52 %).

In addition to bilateral contacts, the Union has a large number of multilateral relations both with international organisations and with other regional groupings of countries. It attaches particular importance to encouraging regional forms of integration, since these help create large, integrated local markets and enable countries in specific parts of the world to participate more effectively on global issues.

In Asia, the Union has developed a stronger regional relationship through greater involvement with the Association of South-East Asian Nations (ASEAN). Burma/Myanmar, while a member of ASEAN is not part of the EU-ASEAN Member States agreement. There are also regular Asia-Europe meetings with the majority of ASEAN members as well as China, Japan and Korea (the ASEM process : Brunei, China, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Thailand, Vietnam).

In Latin America, the main partnerships are with the San José Group (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama), Mercosur (Argentina, Brazil, Paraguay and Uruguay), the Andean Community (Bolivia, Colombia, Ecuador, Peru and Venezuela) and the Rio Group of countries (Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela).

The Union gives strong encouragement to the establishment of regional groupings among the African, Caribbean and Pacific countries and cooperates closely with the Southern African Development Community (SADC). Closer to home, it has a well- developed relationship, particularly on single market matters and flanking policies such as the environment and competition, with the three European Free Trade Association (EFTA) countries - Iceland, Norway and Liechtenstein - which, with the EU, make up the European Economic Area. A unique feature of this association is that the three countries participate in decisions shaping relevant EU legislation. As Switzerland, the fourth EFTA country, is not a member of the EEA, the EU is strengthening its ties with this country through a package of seven bilateral agreements ranging from agriculture and research to transport and the free movement of people.

One of the most recent initiatives is the 'northern dimension' which brings together the EU's more northerly members, Russia and candidate countries in northern Europe.

Over the years, the Union has strengthened its cooperation with a wide range of international organisations. Among the various bodies it now works closely with are the United Nations, the Organisation for Security and Cooperation in Europe, the Council of Europe, the Western European Union, the North Atlantic Treaty Organisation, the World Trade Organisation and various organisations established under the Law of the Sea Convention. In its dealings with the UN, for instance, the Union has been active in the economic, social, environmental, drugs, humanitarian and human rights areas and cooperates on crisis management and conflict prevention.

Some internal EU responsibilities have international implications. Environmental protection and sustainable development are undoubtedly the most visible.

One major priority is ensuring nuclear safety in the former Soviet Union. This is being tackled through a special Tacis programme, which in 1999 had funds of 23 million euro. These are used to provide various forms of technical and practical assistance with particular attention being paid to the decommissioning of reactors at the Chernobyl nuclear plant, and to the problems posed by spent nuclear fuel from submarines and icebreakers in north-west Russia.

The importance of candidate countries meeting high environmental standards was underlined in early 2000 when negotiations were opened to allow all 13 to participate in the Copenhagen-based European Environment Agency (EEA) - their first opportunity to be involved in the work of any of the EU's 11 specialised agencies. The EEA provides up-to-date, reliable and targeted information to help the candidates implement EU environmental laws, establish effective monitoring systems and set up reliable data collection networks.

In addition, a 'priority environmental investment programme for accession' (PEPA) offers some financial help for the candidate countries to implement EU standards. Reliable estimates suggest that as much as 120 billion euro will be required to meet the 10 most important pieces of environmental legislation.

While extending the benefits of participation in existing programmes, the Union has also pressed the candidates to take measures to increase nuclear safety. By the end of 1999, it had successfully won firm commitments from Slovakia, Lithuania and Bulgaria to close down as early as possible the eight nuclear reactors on their territory considered dangerous and non-upgradable.

The European Union's humanitarian role has developed substantially over the past decade and is now an important aspect of its external policy. It is coordinated and organised by the EU's Humanitarian Aid Office (ECHO) with its remit of providing effective humanitarian aid to the victims of natural disasters and armed conflicts. ECHO is now the world's largest donor of humanitarian aid.

The assistance from ECHO is channelled through its partners - United Nations agencies, over 170 non-governmental organisations such as Oxfam and Médecins Sans Frontières, as well as other international bodies. Since 1992, it has signed over 7 000 individual aid contracts with a value of almost 5 billion euro, funding humanitarian assistance in more than 85 countries. The aid is non-discriminatory and is intended to go directly to those in distress irrespective of their race, gender, religious or political convictions. It may include essential supplies, food, medical equipment and medicines and services such as medical aid, water purification teams and logistical support.

ECHO evaluates needs for humanitarian operations and monitors the implementation of the projects themselves. It promotes and coordinates disaster prevention measures by training specialists, strengthening institutions and running pilot micro-projects. It finances landmine clearance schemes. ECHO also supports public awareness and information campaigns aimed at increasing understanding of humanitarian issues.

As emergency aid must be linked to longer-term reconstruction, ECHO's policy is to reduce vulnerability and encourage self-sufficiency among those receiving humanitarian aid so they do not become dependent on it. To that end, it helps set up suitable longer-term strategies.